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Technical indicators: neutral to bearish

During early morning trade oil futures slightly retreated on news about Libya wanting to resume its exports to Europe and the US.

Oil futures at ICE and NYMEX traded steady Wednesday morning, mainly supported by a soft dollar. With oil prices breaching their first resistance lines in the course of the morning, further upward potential was created. With the vote of the Greek Parliament regarding austerity measures ahead later that day, there was a bullish tendency throughout the complex. This tendency was supported by the publishing of the DOE data on US oil inventories and along with technical buying led to a price rally. The bullish trend remained until nighttime on some profit taking regarding the U.S. Dollar and on the strong Euro. Thus oil futures setteled near their intra-day highs at ICE and NYMEX.

ICE Gasoil contract for July delivery settled at 923.25 dollars on Wednesday. This was 32.50 dollars above Tuesday's settlement. With some 49,900 contracts, the traded volume was below average.

Given Yesterday's buying signals of the stochastic indicator and the RSI, both indicators remain bullish. Wednesday's correction upwards has already consumed a great part of the upward potential. NYMEX C. Oil has reached a strong area of resistances between 95.85 dollars and 96.00 dollars. For a continuing correction upwards, according to analysts this area would need to be transcended. Only then there might be further technical buying. The mid-term range is seen at 90 to 100 dollars. Ahead of the long weekend in the USA many market participants might however might consolidate risky positions and avoid larger long and short positions. The first support for the WTI crude is seen at 92.65 dollars, the first resistance at 95.85 dollars. The Brent's first resistance is seen at 112.70 dollars, its first support is at 111.00 dollars.

U.S.

EIA monthly energy report

In April 2011, US oil use has dropped to the lowest level since January 2010.
• US oil use in April: -1.6% vs. same month in the previous year at 18,6 mbpd.
• US gasoline use in April: -3.7% vs. same month in the previous year at 8.8 mbpd.
• US distillate use in April: -0.5% vs. same month in the previous year at 3.7 mbpd.
• US ultra-low sulfur diesel use +3.7% vs. previous year.

APIs: crude oil -2.7; distillates -0.9; gasoline -0.1 million barrels vs previous week. Refinery utilization +0.0%

DOEs: crude oil -4.4; distillates +0.3; gasoline -1.4 million barrels vs previous week. Refinery unilization -1.1%

Forecasts: Crude oil -1.0; distillates +1.1; gasoline +0.0 million barrels vs previous week.

Houston (ex-wharf indications 29-6)

380 cst $636
180 cst $666
MDO $937

Very tight avails for 180 cst

New Orleans (ex wharf indications 29-6)

380 cst $638
180 cst $669
MDO $941

Singapore (correct as of 1430hrs LT - delivered indications)

Crude is slowing in its bullish run, gaining still with WTI +$0.88. Singapore paper is more bullish, gaining with +$10.70 for 180 cst and +$10.75 for 380 cst for Jul, and for Aug 180 cst +$10.79 and 380cst +$10.80 with MGO Jul contracts at +$2.37 and for Aug at +$2.36. The cargo market is gaining bullish momentum with 180cst +$10.33, 380cst +$10.26 and MGO +$3.19.

The Singapore fuel oil market extended its strength and was up more than $10.00 during the Platts window yesterday. The Asian Fuel Oil cracks weakened slightly but remain firm as buying interest stays high. The delivered premiums were around $12.50 above cargo prices yesterday. This morning both markets are trading lower.

High premiums for prompt deliveries.

380 cst $655
180 cst $665
MDO $927

Fujairah (delivered indications 30-6)

380cst: $645
180cst: $671
MGO: $1034

Rotterdam

Indications for delivered bunkers:

380cst :$ 623
(1.0 %) :$ 682
180cst :$ 647
(1.0 %) :$ 709
MGO 0.1%S: $ 919